Insights Government publishes outcome of consultation on tax reporting rules for digital platforms

In July 2021, HMRC consulted on implementation of the OECD Model Reporting Rules, which require digital platforms to report details of the income of sellers on their platform to the tax authority and to the sellers.

HMRC proposed that from January 2023 platforms would be required to report information about the income of sellers on their platforms providing goods and services. The aim is to help sellers get their tax right and to enable HMRC to detect and tackle non-compliance.

The consultation set out the details of the rules and sought views on the Government’s implementation, including on optional elements of the rules.

The Government has now published the responses to the consultation. A total of 28 written responses were received from platforms, advisers, representative bodies and sellers. Most respondents were supportive of the proposals, although opinions varied on some specific issues.

The Government will now publish draft regulations to implement the new reporting rules for an eight-week technical consultation in September 2022.

The new rules will apply from 1 January 2024, which means platforms will be expected to collect information from 1 January 2024, with the first reports due by 31 January 2025. To access the consultation outcome, click here.